Honda "Likely" to Reduce 2007 Sales Forecast

Honda Motor Co. Vice President Koichi Kondo told reporters Thursday it was "likely" Honda would cut its 2007 sales forecasts, as the number-two Japanese automaker struggles to sell vehicles in its home market. Honda's current sales projection of 660,000 vehicles is already 1.8% weaker than 2006. Last week Toyota lowered its 2007 Japan sales forecast from 1.72 million to "mid-1.6 million" vehicles, but maintained its global sales target, saying industry-wide conditions have worsened due to higher oil prices and subprime mortgage related troubles (full story). Reasons cited for weak domestic Japanese sales include excellent public transportation, declining paychecks, and a demographic shift to lower birth rates.